Yahoo Profit Beats Analysts' Estimates on Ad Growth
2 mensagens
|Página 1 de 1
Yahoo Profit Beats Analysts' Estimates on Ad Growth
Yahoo Profit Beats Analysts' Estimates on Ad Growth (Update1)
By Ari Levy
Enlarge Image/Details
Oct. 16 (Bloomberg) -- Yahoo! Inc., owner of the most- visited U.S. Web site, reported third-quarter results that beat analysts' estimates, signaling that acquisitions and new advertising software may be spurring growth.
Net income fell 4.6 percent to $151.3 million, or 11 cents a share, from $158.5 million, or 11 cents, a year earlier, the Sunnyvale, California-based company said today in a statement. Sales, excluding revenue passed on to partner sites, rose 14 percent to $1.28 billion, beating analysts' estimates.
Yahoo co-founder Jerry Yang, who returned as chief executive officer in June, plans to cut into Google Inc.'s lead in Internet search queries and bolster sales of graphical advertising. While failing to stem the slide in search, growth in Yahoo's advertising business may be accelerating, helped by deals announced today with Forbes.com and WebMD Health Corp.
``People are expecting execution and focus,'' said Laura Martin, an analyst at Soleil Securities Corp. in New York, who rates the shares ``buy'' and doesn't own them. Still, ``they need to close the gap with Google.''
Analysts on average had estimated third-quarter sales of $1.24 billion, according to a Bloomberg survey. Profit topped analysts' average estimate of 8 cents a share.
Yahoo shares jumped $2.38, or 8.9 percent, to $29.07 in extended trading after the report. They had fallen $1.17, or 4.2 percent, to $26.69 at 4 p.m. New York time on the Nasdaq Stock Market. The stock has gained 4.5 percent this year.
Company Forecast
Revenue in the fourth quarter will be $1.31 billion to $1.45 billion, Yahoo said, compared with a $1.38 billion average analyst estimate. Yahoo had sales in the year-earlier period of $1.23 billion.
Yahoo lost ground to Google in search during the quarter, with its market share falling to 19.9 percent in August from 24 percent a year earlier, according to New York-based Nielsen//NetRatings. Google, located in Mountain View, California, rose to 53.6 percent from 50.2 percent.
Yang, 38, who replaced Terry Semel as CEO, plans to revive the company's search business and bolster sales of graphical ads. Yahoo had lost business in that market to social-networking sites MySpace, owned by News Corp., and Facebook Inc.
In July, Yang told investors he would spend the next 100 days reviewing the company's business units and crafting a plan to ``dramatically improve'' performance.
Forbes, WebMD
As a result, the company is focusing more on Web ad sales and boosting the number of sites available to advertisers, Senior Vice President Todd Teresi said in an interview. Yahoo said today that it's helping Forbes.com sell graphical ads across the publisher's sites.
In another accord, Yahoo will sell sponsored search results on the site of WebMD, a provider of health and news advice that was previously using Google, Teresi said. Yahoo also announced advertising deals with Ziff-Davis Media Inc. and Cars.com, a unit of Classified Ventures LLC.
``Yahoo is zeroing in on what matters,'' Teresi said.
Yahoo makes its money selling search-linked ads, the four- line bits of text that appear next to search results, and from display advertising, which includes banner and video ads. Each type of ad contributes about 40 percent of revenue, according to Goldman, Sachs & Co. analyst Anthony Noto.
Acquisition Spree
Yahoo agreed last month to buy San Jose, California-based BlueLithium Inc., the fifth-largest U.S. ad network by the number of users. Two weeks later, the company announced plans to purchase San Mateo, California-based Zimbra Inc. to bolster its e-mail service. Yahoo also acquired an online-news site called BuzzTracker in Chicago during the quarter and added sports news site Rivals.com.
To close the gap with Google, Yahoo upgraded its search engine this month to include videos and Flickr photos in query results. This year, the company introduced software designed to make ads more relevant to the user and more likely to be clicked.
Yang also promoted Hilary Schneider, a former Knight Ridder Inc. executive, to the top sales position in August, replacing Gregory Coleman. That followed his decision in June to combine the teams covering graphical ad sales and sponsored search links into a single sales force.
To contact the reporter on this story: Ari Levy in San Francisco at alevy5@bloomberg.net
Last Updated: October 16, 2007 16:52 EDT
By Ari Levy
Enlarge Image/Details
Oct. 16 (Bloomberg) -- Yahoo! Inc., owner of the most- visited U.S. Web site, reported third-quarter results that beat analysts' estimates, signaling that acquisitions and new advertising software may be spurring growth.
Net income fell 4.6 percent to $151.3 million, or 11 cents a share, from $158.5 million, or 11 cents, a year earlier, the Sunnyvale, California-based company said today in a statement. Sales, excluding revenue passed on to partner sites, rose 14 percent to $1.28 billion, beating analysts' estimates.
Yahoo co-founder Jerry Yang, who returned as chief executive officer in June, plans to cut into Google Inc.'s lead in Internet search queries and bolster sales of graphical advertising. While failing to stem the slide in search, growth in Yahoo's advertising business may be accelerating, helped by deals announced today with Forbes.com and WebMD Health Corp.
``People are expecting execution and focus,'' said Laura Martin, an analyst at Soleil Securities Corp. in New York, who rates the shares ``buy'' and doesn't own them. Still, ``they need to close the gap with Google.''
Analysts on average had estimated third-quarter sales of $1.24 billion, according to a Bloomberg survey. Profit topped analysts' average estimate of 8 cents a share.
Yahoo shares jumped $2.38, or 8.9 percent, to $29.07 in extended trading after the report. They had fallen $1.17, or 4.2 percent, to $26.69 at 4 p.m. New York time on the Nasdaq Stock Market. The stock has gained 4.5 percent this year.
Company Forecast
Revenue in the fourth quarter will be $1.31 billion to $1.45 billion, Yahoo said, compared with a $1.38 billion average analyst estimate. Yahoo had sales in the year-earlier period of $1.23 billion.
Yahoo lost ground to Google in search during the quarter, with its market share falling to 19.9 percent in August from 24 percent a year earlier, according to New York-based Nielsen//NetRatings. Google, located in Mountain View, California, rose to 53.6 percent from 50.2 percent.
Yang, 38, who replaced Terry Semel as CEO, plans to revive the company's search business and bolster sales of graphical ads. Yahoo had lost business in that market to social-networking sites MySpace, owned by News Corp., and Facebook Inc.
In July, Yang told investors he would spend the next 100 days reviewing the company's business units and crafting a plan to ``dramatically improve'' performance.
Forbes, WebMD
As a result, the company is focusing more on Web ad sales and boosting the number of sites available to advertisers, Senior Vice President Todd Teresi said in an interview. Yahoo said today that it's helping Forbes.com sell graphical ads across the publisher's sites.
In another accord, Yahoo will sell sponsored search results on the site of WebMD, a provider of health and news advice that was previously using Google, Teresi said. Yahoo also announced advertising deals with Ziff-Davis Media Inc. and Cars.com, a unit of Classified Ventures LLC.
``Yahoo is zeroing in on what matters,'' Teresi said.
Yahoo makes its money selling search-linked ads, the four- line bits of text that appear next to search results, and from display advertising, which includes banner and video ads. Each type of ad contributes about 40 percent of revenue, according to Goldman, Sachs & Co. analyst Anthony Noto.
Acquisition Spree
Yahoo agreed last month to buy San Jose, California-based BlueLithium Inc., the fifth-largest U.S. ad network by the number of users. Two weeks later, the company announced plans to purchase San Mateo, California-based Zimbra Inc. to bolster its e-mail service. Yahoo also acquired an online-news site called BuzzTracker in Chicago during the quarter and added sports news site Rivals.com.
To close the gap with Google, Yahoo upgraded its search engine this month to include videos and Flickr photos in query results. This year, the company introduced software designed to make ads more relevant to the user and more likely to be clicked.
Yang also promoted Hilary Schneider, a former Knight Ridder Inc. executive, to the top sales position in August, replacing Gregory Coleman. That followed his decision in June to combine the teams covering graphical ad sales and sponsored search links into a single sales force.
To contact the reporter on this story: Ari Levy in San Francisco at alevy5@bloomberg.net
Last Updated: October 16, 2007 16:52 EDT
- Mensagens: 555
- Registado: 2/7/2004 18:11
2 mensagens
|Página 1 de 1